This post provides a clear, data-backed overview of the 2025 individual income tax framework in Algeria, outlining income brackets, applicable rates, and the structure every taxpayer should know.
Overview of Individual Income Tax in Algeria
Algeria applies a progressive individual income tax system based on annual income levels. As of 2025, there is no flat rate; instead, increasing rates are applied to higher portions of income. The tax is assessed on an individual’s income (designated in Algerian Dinar – DZD), and there are no disclosed surtaxes or holding period requirements.
Algerian Individual Income Tax Rates and Brackets (2025)
The following table presents the current progressive tax brackets for resident individuals in Algeria:
| Bracket | Taxable Income Range (DZD) | Rate (%) |
|---|---|---|
| 1 | 0 – 240,000 | 0% |
| 2 | 240,001 – 480,000 | 23% |
| 3 | 480,001 – 960,000 | 27% |
| 4 | 960,001 – 1,920,000 | 30% |
| 5 | 1,920,001 – 3,840,000 | 33% |
| 6 | 3,840,001 and above | 35% |
All taxable figures are calculated in Algerian Dinar (DZD). As an example, as of early 2025, the exchange rate is approximately 1 USD = 135 DZD (always confirm official rates before converting).
How the Progressive Tax Framework Works
Algeria’s system taxes portions of your annual income at different rates, with each bracket applying incrementally. For instance, the first DZD 240,000 is not taxed; the next segment (up to DZD 480,000) is taxed at 23%, and so on. The top marginal rate (35%) is reserved for taxable income above DZD 3,840,001.
No additional surtaxes have been announced or made publicly available by Algerian authorities. Likewise, there is no indication of a holding period requirement or minimum asset retention linked specifically to personal income tax.
Summary Table of Key Parameters
| Parameter | Details |
|---|---|
| Currency | DZD (Algerian Dinar) |
| Assessment Basis | Individual annual income |
| Rate Structure | Progressive |
| Surtaxes | None published |
| Holding Period | Not applicable |
Pro Tips for Managing Individual Income Tax in Algeria
- Carefully calculate the cumulative tax burden by applying each marginal rate only to the respective bracket portion of income, not the full amount.
- Stay up to date with potential annual changes to tax brackets and rates; official government releases are the best information sources.
- Keep clear and comprehensive documentation of all domestic income, as income assessments are strictly enforced based on reported earnings.
- If your income fluctuates within two brackets, consider the implications for year-end tax planning and possible withholdings.
Official References
For authoritative updates, details, and forms, consult the official Algerian government finance portal:
Algeria’s tax framework is straightforward in structure, but being attentive to bracket thresholds has an outsized effect on your effective tax rate. As of 2025, there are no published surtaxes or special holding periods to anticipate. Prioritizing clear income tracking and staying informed on official announcements are key to remaining tax compliant and avoiding surprises.